Navigating Through Post-Merger Integration of CRM Systems: A Salesforce Perspective

Digital Business
Navigating Through Post-Merger
Integration of CRM Systems:
A Salesforce Perspective
To execute a successful post-merger integration of customer relationship
management (CRM) system Saleforce.com (SFDC), organizations must
understand and address specific critical considerations. These include IT
asset consolidation, unifying and streamlining the post-merger architecture
and organizational structure, change management execution, data migration
processes, and regulation and compliance requirements.
Executive Summary
By their very nature, mergers and acquisitions are
complex exercises that require deep thinking and
precise execution, encompassing people, process and
technology aspects for success. Post-merger integration
of customer relationship management (CRM) systems
can become a challenging and time-consuming task for
the simple reason that they do not always fit a structured
and programmatic approach that can be effectively
articulated in a point-by-point integration exercise.
This point-of-view paper addresses corporate pain
points by detailing the critical considerations required for
a successful post-merger integration of CRM systems.
It assumes the CRM system of the acquiring company is
Salesforce.com (SFDC), and that all CRM functionalities
will be consolidated in SFDC.
March 2019
Cognizant 20-20 Insights

Facets of IT assets in mergers/acquisitions
The success or failure of many mergers and
acquisitions often pivots around IT asset
consolidation. These exercises can be broadly
classified in three categories: pre-merger, merger
and post-merger (see Figure 1).
Figure 1
Classifying mergers & acquisitions
Pre-merger
• IT due diligence team
• Identification of IT asset and inventory - robust asset management
• Cross-functional software asset management (SAM) team formation
Merger
• Corporate strategy/M&A team, Legal
• Acquisition of Salesforce licenses/instances
• Integration Management Office (IMO) setup
• Identify and achieve short-term, tactical operational imperatives
• Devise short- and long-term plan for Salesforce-related asset management
Post-merger
• Network and IT Architects, Legal, Procurement and Sourcing
• Rationalization of Salesforce and related applications
• Decommissioning of redundant assets
• Enact new agreements with Salesforce
IPs
(patents
source code,
TMs,
etc.)
IT assets Agreements
(Salesforce-
supporting
software)
Mobile
devicesand
apps
Salesforce
licenses
Domain
names
IT
workforce
CRM
users
2 / Key Considerations for Post-Merger Integration of CRM Systems into Salesforce.com

Key steps in creating an integrated Salesforce CRM architecture
Salesforce CRM architecture
Every organization has its own CRM landscape
and architecture, adapted to support its business
operations. It is critical that the existing CRM
landscape and architecture are unified post-
merger/acquisition (M&A) to achieve the maximum
synergy possible. Organizations must overcome
key technology challenges after an acquisition to
unify and streamline business processes across
the entire enterprise. Post-merger IT integration
aims to align business processes, systems and
procedures across the combined organizations.
The step-wise approach for integration of CRM
architecture along M&A timelines is detailed in
Figure 2.
Salesforceorganizationalstructure,post-merger/acquisition
The decision to adopt single or multiple Salesforce
organizations typically hinges on reducing
complexity (both from administration and usability
points of view) and the need for having a single
source of truth for the entire organization. Both
single Salesforce organizational setups and multiple
Salesforce organizational structures have their own
sets of advantages and disadvantages. The decision
to adopt single or multiple Salesforce organizations
post-merger/acquisition should be made primarily
on the basis of the business operating strategy.
In a well-regarded book that examines enterprise
architecture as strategy,the authors propose the
four operating models, based on business process
integration and business process standardization.1
Figure 3 (next page) highlights the suggested
strategy for Salesforce organizations along the
lines of the four operating models post-merger/
acquisition.
Figure 2
Key considerations
• Platform identification (Lightning)
• Salesforce orgs
• Users/roles and hierarchy
• Apps implemented (sales cloud,
service cloud, marketing cloud,
partner app, community)
• Mobile apps
• Third-party apps for Salesforce
• Integration touchpoints
• Real time – inbound and outbound
• Batch – inbound and outbound
• Workflows
• New SLAs and business rules
• Reports and dashboards
• Middleware
• Third- party ETL tool usage
• License impacts
Pre-merger - Analysis & due diligence
Merger – Operational synergies
Post-merger – Integration execution
Business
case for
change
As- is v/s
to-be state
Impact
analysis
of CRM
initiatives
IT
portfolio
analysis
IT assets
analysis
IT and
CRM
leadership
assessment
Analyze
workflow
and
integration
impact
Assess
inflight
projects
Define
integration
plan
Development
and acquisition
of SFDC
Alignment of
key CRM
processes
Alignment to regulatory
and compliance
requirements
Integration of major
business functions and
communications
Uninterrupted
customer
experience
Integration
project
plan
Roles and
responsibilities
(internal and
external)
SFDC
architecture
and design
Implementation Integration Ongoing support
and enhancements

Other critical considerations in this regard include
the ability to handle multiple lines of business in a
single Salesforce organization; executing effective
change management in a single organizational
setup; fulfillment of regulatory/compliance/
security requirements; and technical limitations
(e.g., code customization limits of a single
organization).
Salesforce license rationalization
Salesforce license rationalization post-merger/
acquisition should be viewed as an operational
cost-saving initiative by optimizing the number of
Salesforce licenses that are required. A thorough
understanding of the data structure, required
profiles, roles/role hierarchy, permission sets and
overall Salesforce architecture is required before
embarking on the journey for optimizing the
Salesforce licenses post- merger/acquisition.
To a large extent, business integration and the
existing CRM system of the “target” organization
(i.e., the organization acquired or merged) dictates
the Salesforce license rationalization approach, as
shown in Figure 4.
Figure 4
An approach for license rationalization
The Salesforce organizational structure calculus
Figure 3
Process integration Process standardization Strategy Org structure recommended
High High Unification Single (As few as possible)
High Low Coordination Single (As few as possible)
Low High Replication Multiple
Low Low Diversification Multiple
Business integration approach
approach (Target company has
Salesforce as CRM system)
approach (Target company has
other CRM system)
1
Acquisition: The “target” company is
retained as-is in the merged entity.
• Identify “common” job functions & adopt approach detailed in #2
• For non-common job functions, create new profiles/roles and
assign appropriate user licenses
2
Merger: The “target” company’s
operations are absorbed in the
acquiring company’s operations.
Identify and merge users in
“overlapping”existing Salesforce
licenses in existing licenses of
acquiring company
Assign CRM system users of the
target company to the existing
Salesforce licenses in the
acquiring company
3
Consolidation: Two companies come
together to provide altogether new
products/services by leveraging the
achieved synergy.
Post finalization of job functions, devise profiles/ roles/permission sets
and allocate appropriate Salesforce licenses to users

Data migration
Data from the acquired company’s CRM system
needs to be migrated to the Salesforce instance of
the merged business entity. Doing so ensures that
the acquired company's business processes are
carried over and executed successfully to achieve
the synergy envisioned from the M&A. To manage
the variety and complexity of the data migrated, it is
critical to set up a high-level process to govern the
necessary micro steps during the data migration.
Assuming the data migrated from the CRM system
(Salesforce.com or others) to Salesforce.com is
a one-time migration, we suggest an approach
depicted at a high level in Figure 5.
Other critical considerations for ensuring a fail-safe
data migration include:
❙❙ Back-up CRM data prior to the migration.
❙❙ Execute data migration during non-business
hours.
❙❙ Confirm accurate user mapping to ensure
correct record ownership.
❙❙ Set up organization-wide defaults and profiles in
line with visibility rules.
❙❙ Map page layouts to profiles according to
visibility rules.
❙❙ Execute manual sanity testing post-migration
and before the go-live.
❙❙ De-activate workflows/triggers during data
migration to prevent flooding of mailboxes by
mass e-mails.
Figure 5
A governance process for data migration
Analysis Extraction Preparation
SequencingLoadingVerification
Mapping/
Transformation
Identify
redundant/
obsolete process
and associated data
Identify
redundant/
obsolete process
and associated data
De-scope
redundant data
from scope of
migration & finalize
scope for migration
Execute data load
as per pre-defined
sequence in prod
environment, post
resolution of issues
Extract data from
CRM system of
merged entity
Execute data
load as per pre-
defined sequence
in “lower”
environment
Create new objects/
fields in “target”
Salesforce org
to accommodate
new data
Finalize sequence
of data load
Map all
data to
Salesforce
objects/fields
Identify data
as required/
optional based on
business logic

Change management
Change management is one among the key
drivers of a successful M&A. From the leadership
through the on-ground workforce, various aspects
of change management must be applied to both
organizations.
In practice, change management must be
executed at two broad levels -- internal and external.
Managing internal change involves communication
to staff members of both organizations; formulation
of staffing practices to be followed post M&A,
planning the to-be organization structure; process
decisions; Salesforce trainings, etc. Managing
external change involves communications to
external entities (customers/regulatory authorities/
media, etc.), new product offerings, and marketing
support.
Broadly speaking, the key to successful change
management is highlighted in Figure 6.
Figure 6
The tenets of successful change management execution
Identify the
change
Design the
change
Execute the
change
• Assess the changes
required across people,
processes and culture
• Carry out stakeholders’
assessment
• Identify changes that need
to be communicated to
relevant teams/employees
• Initiate training and
deployment to the
impacted teams
• Prioritize the strategic
opportunities and goals
• Assess the current model
and design the future
operation model
• Design the channels and
plan for communication
to relevant teams/
employees
• Reach consensus on joint
targets and baselines
• Launch the
communication, mailers
and portal updates
• Deploy future model
and enable monitoring
mechanisms
• Implement the
organization details and
processes
• Collaborate on agreed
synergies

The suggested steps, key considerations and best practices for managing external change management
are illustrated in Figure 8.
The suggested steps, key considerations and best practices for managing internal change management
are depicted in Figure 7.
Figure 8
Making change management work externally
Figure 7
Making change management work internally
Key
considerations
• Involvement
• Communication
• Staffing practices
• Organizational
structure
• Process decisions
• Cultural interventions
Key
considerations
• Customer/Member
communications
• Media communications
& public relations
• Community
communications &
community relations
• Other marketing
support
• Product offerings
Pre-merger –
Strategy/
M&A team
• Set up a change
management
committee
• Communicate with
employees
Pre-merger –
PR team
customers, partners,
vendors and other
external stakeholders
• Share the merger
details
• Provide seamless
sales and service
support
Merger – Strategy,
M&A team, change
management committee
• Define goals, values,
vision, strategy and
policies for the new entity
employees
• Define the operating
model
Merger – Sales,
service and marketing
team, CRM IT ieam
customers about the new
entity
• Implement the new
branding at all external
communication
touchpoints such as email,
SMS, websites, customer
portals, stationaries, etc.
Post-merger –
Change committee
• Analyze and understand
cultural differences
• Involve employees
• Downsize/Redeploy
employees
• Train employee to align to
new CRM processes and
Salesforce
• Track results
Post-merger –Sales, service
and marketing team, CRM
IT team
• Analyze and understand
various external
touchpoints of CRM
• Rebrand Salesforce as per
the new entity
• Implement the new
defined CRM processes in
Salesforce
• Provide access and
training to internal and
external users
customers about changes
in systems and processes
Best practices
• Communicate with customers and partners throughout the merger process
• Identify the branding aspect before the merger and align to the new branding from day one of the merger
• Keep all the channels aligned to the new processes and branding
• Get regular feedback from partners and customers about their experiences
Best practices
• Set up a change management committee to take care of change management throughout the merger process
• Communicate with employees from day one
• Conduct workshops for employee trainings
• Partner with Salesforce to provide CRM training, including best practices
• Form core teams for each workstream to ensure deep expertise, access to Salesforce integration tools and necessary capacity

Regulation & compliance
To a large extent, regulation and compliance
formalities are driven by the nature of business,
as well as its organizational structure, operating
strategy and region/location. It is natural to assume
that both organizations in a merger/acquisition
may not be governed by the same set of regulations
and may not need to comply with the same set of
laws because their operating strategy and location
often vary. Broadly speaking, regulations and
compliance include policies, procedures, contracts,
legal obligations and guidelines, etc.
For a M&A to be successful, regulatory changes and
compliance requirements must be competently
managed to ensure that both business entities
are aligned and run smoothly. Given the scale and
complexity of most M&A transactions, and the
need to commercialize acquired products/services
quickly, the acquiring organization needs a well-
defined framework to successfully harmonize the
regulatory changes and compliance requirements,
reducing lead time of the acquired product/
services to hit the market.
Our suggested framework to manage regulatory
changes and compliance requirements comprises
five steps, as detailed in Figure 9.
Figure 9
Managing M&A regulation & compliance requirements
• Existing regulatory
and compliance
details
• Probable future
regulation changes
• Recent compliance
breaches
• Past non-
compliance actions
and their remedies
Review
• Map areas of
business, contracts,
policies, and
procedures
impacted by merger
or acquisition
• Communication
channels to
announce the
changes
• Categorize the risks
• Existing pain points
Assess
• Measure impact
of the change
assessments
• Prepare the
checklists/plans
• Identify the
resources and form
small teams
• Identify the risks
and their mitigation
solutions
Confirm
• Update policies,
contracts and
procedures
• Create new policies
as required
• Communicate the
changes
• Kick off training
and deployment
Implement Monitor
• Conduct audit
reviews and update
mitigations plans
• Maintain/update
policies and
controls
• Maintain
organizational
hierarchies
• Communicate
continuously
Recommended framework
Key considerations in Salesforce orgs
• Existing business
objects
• Roles and profiles
• Existing workflows,
validation rules, and
approvals
• Assess the contract/
terms mgmt., SLAs,
case queues, and
pricing rules
• Set the campaigns
for communications
• Create account
teams, price books
• Set up marketing
plans
• Design solution for
mitigation plans
• Create new
contracts/terms,
SLA changes
• Deploy updated
workflows, LOVs,
validation rules
• Role hierarchy
• Roles &
responsibilities

Sales, marketing & service integration
The proposed framework for successful integration of sales, marketing and service functions post M&A is
highlighted in Figure 10.
A framework for sales, marketing & service integration
Marketing
management
Sales
management
Service
management
• Go-to-market planning
• Branding, advertising briefs
• Campaign management
(Tradeshows, events, and
conferences)
• Customer segmentation,
targets list
• Lead qualifications/cleaning
• Campaign and lead migration
• Lead generation and
distribution
• Create/update roles and
responsibilities
• Lead & campaign objects
mapping and LOVs mapping
• Territories realignment
• Lead assignment rules/
queues
• Accounts/contacts migration
• Sales quota coverage across
products and geos
• Bookings forecasting
• Pipeline reporting
• Quote generations
• Harmonize pricing and license
updates
• Opportunity migrations and
sync up
• Update account/opportunity
team as per coverages
• Install base migrations
• Zero booking orders
• Enable access in customer
portals
• Case migrations
• Update cases queue/teams to
factor new products
• Update/add knowledge
articles/documents
• Provide access to partner
portals/communities
• Integrate support functions/
groups
• IVR queues for new products
• Create/update the daily/weekly
reports and dashboards
Figure 10

Planning the post-merger integration
A good deal of planning goes into detailing the post-merger integration of a CRM system into a single/
multiple Salesforce instance(s). We recommend using a top-down approach to listing all elements of a
CRM environment, post-merger integration (as revealed in Figure 11).
The progress of the planning can be tracked by a simple report on the progress of the activities and
associated tasks.
Figure 11
The elements of a CRM environment
Key considerations
Deal type indicating whether
it’s partial or full integration
List of business applications
in scope (Salesforce and
interfacing applications)
CRM function areas in scope
like marketing, sales, and
service
Processes in scope for each
function areas, e.g., lead
management, customer
onboarding, etc.
Activities to be covered for
each process in scope
Tasks to be performed for
completion of activities
Teams to which tasks are
mapped
Timelines for tasks
Tasks:
actionable steps
corresponding to
activities
Activities:
actions to be
completed
Process:
group of activities
that are to be
completed
Functions:
logical grouping of
processes that take place
during an integration
project

11 / To Be Digital, Pharma Labs Must Bridge the Gap Between Legacy Systems & Connected Gear
CRM Systems Consolidation:
A Case in Point
The following provides a representative M&A project, in which our toolkit may have been
leveraged to smoothly achieve the envisioned synergy between two combined organizations.
Business situation
A global leader in cloud computing and platform virtualization software and services was in
the process of consolidating IT applications for the newly acquired companies. As a part of
the business and IT strategy, the organization wanted to consolidate the CRM marketing
functionalities across its own Salesforce instance and the Eloqua instance of one of its
acquired companies. The aim was to leverage envisioned synergies by having the acquiring
company set up a unified sales management process. The end objective was to improve
partner experience and obtain operational excellence.
Lead management consolidation (out of the many sales processes) is taken into consideration
for the purpose of this case reference.
Quick Take

Quick Take
12 / To Be Digital, Pharma Labs Must Bridge the Gap Between Legacy Systems & Connected Gear
Challenges
Keeping both systems (Salesforce and Eloqua) live post-completion of the acquisition has
its own set of challenges, which are listed below:
❙❙ Multiple information sources, leading to ineffective lead nurturing and gaps in reporting.
❙❙ Possible duplication of efforts and error-prone process in managing leads in two
systems.
❙❙ No effective lead assignment process, based on lead source, as leads are spread across
multiple systems.
Solution
The crux of the solution is to reduce the manual effort by adding the lead data to the
acquiring company’s SFDC instance. Key points include:
❙❙ Synchronize the leads generated in Eloqua (CRM system of the acquired company) with
the acquiring company’s SFDC lead management functionality.
❙❙ Associate campaign with the lead in SFDC.
❙❙ Assign territory and route the leads based on territory assignment.
❙❙ Use lead conversion to create account, contact and opportunity in SFDC instance of the
acquiring company.
❙❙ Execute the above migration-related activities by adopting the steps mentioned in this
toolkit.

A future blueprint
Before implementing technology changes (i.e.,
merging CRM data and functionalities), leadership
of the combined organization must understand key
activities, their sequencing and associated timelines.
This will help with up-front planning of the required
resources and the smooth execution of change.
Figure 12 highlights the envisioned roadmap.
The roadmap presents an approximate picture of
the timelines by which the technology changes may
be planned and executed. One caveat: The actual
execution timelines may vary from our model,
depending on the complexity and volume of data
and process to be migrated, as well as the number
of resources deployed.
The planning and execution of M&A as a process
(encompassing people, process and technology
aspects), and the associated technological
changes, is inherently complex and comprises
several critical steps. The key to successfully
executing post-merger integration of CRM
systems lies in brainstorming the organizational
structure of the target SFDC-based CRM system,
detailing the approach to license rationalization
and successful execution of one-time data
migration. The execution of these steps must be
performed under the umbrella of effective change
management, and care should be taken to abide by
appropriate laws.
Figure 12
A suggested roadmap for executing M&A-related technology change
W1Track W2 W3 W4 W5 W6 W7 W8 W9
Assessment &
roadmap
Due diligence
Rollout
planning &
implementation
*The interim rollout may vary from 1-3 months
Transformational readiness/portfolio
Integration/migration challenges
Overall implementation/integration approach
Detailed implementation approach - Wave I
Wave I rollout*
WaveI support|Subsequentwaveplanning&rollout.

Endnotes
1 Enterprise Architecture as Strategy: Creating a Foundation for Business Execution,” the authors have proposed four
operating models for business.” https://blogs.msdn.microsoft.com/jmeier/2013/02/24/diversification-coordination-
replication-and-unification/.
Acknowledgments
The authors would like to thank Kunal Parikh, a Director with Cognizant’s Customer Experience Practice,
for his guidance in writing this white paper.

About the authors
Chiranjib Banerjee
Senior Consultant, Cognizant Enterprise Application Services
Chiranjib Banerjee is a Senior Consultant with Cognizant’s Enterprise Application Services (EAS) -
Salesforce practice. He has more than eight years of experience in the information technology industry,
and his core responsibilities include business analyst/ functional consultant on projects in the CRM space,
spanning industries. He holds an MBA from Narsee Monjee Institute of Management Studies (NMIMS),
Mumbai. He can be reached at Chiranjib.Banerjee@cognizant.com.
Tapaswini Patra
Product Consultant - Functional, Cognizant Insurance PPS
Tapaswini Patra is a Senior CRM Consultant with Cognizant Insurance PPS. She has more than 11 years of
experience in the areas of CRM business and process consulting, business process understanding, gap
analysis, domain and functional consulting, feasibility study, presales activities, and business development.
She holds an MBA from the Institute of Management Technology, Ghaziabad. She can be reached at
Tapaswini.Patra@cognizant.com.
Kunal Parikh
Director, Cognizant Customer Experience Practice
Kunal Parikh is a Director with Cognizant’s Customer Experience Practice. He has 16 years of experience
with expertise in business and technology strategy. He is passionate about exploring disruptions at the
intersection of new business models and emerging technologies to transform customer experiences.
Kunal has an MBA from the Indian School of Business, Hyderabad. He can be reached at Kunal.Parikh@
cognizant.com.

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Navigating Through Post-Merger Integration of CRM Systems: A Salesforce Perspective